01/30/2026 Novation Deal Desk: Underwriting, Pitching & Protecting Profit

On this Novation Call, the team hosted a live deal desk Q&A focused on underwriting novation opportunities, pressure-testing contracts, and confidently pitching sellers. The conversation centered on tightening deal quality, managing seller expectations, and using structure—not hope—to protect margins. Real-world scenarios highlighted how to keep novations profitable even in complex or high-risk deals.

• Underwrite with CCRV, not ARV: Use comps in similar condition to reflect true market value without rehab adjustments.

• Enforce the 48-hour rule: All deals must reach ATP (Approved to Purchase) quickly to eliminate weak contracts.

• Protect profit margins: Target $20k–$25k spreads; $15k only for low-risk, fast-moving properties.

• Pitch using Price, Time & Convenience: Anchor with a low cash offer, then trade timeline and ease for a higher price.

• Set expectations early: Use a Seller Expectations Net Sheet and clearly position profit as compensation for market risk.